Large investor rentals (by Gene [OH]) Jan 8, 2021 1:24 PM
Large investor rentals (by #22 [MO]) Jan 8, 2021 2:01 PM
Large investor rentals (by JB [OR]) Jan 8, 2021 2:27 PM
Large investor rentals (by S i d [MO]) Jan 8, 2021 3:29 PM
Large investor rentals (by 6x6 [TN]) Jan 8, 2021 3:47 PM
Large investor rentals (by Gene [OH]) Jan 8, 2021 4:01 PM
Large investor rentals (by S i d [MO]) Jan 8, 2021 4:28 PM
Large investor rentals (by Robert,OntarioCanada [ON]) Jan 8, 2021 7:35 PM
Large investor rentals (by MikeA [TX]) Jan 8, 2021 11:39 PM
Large investor rentals (by PG [SC]) Jan 9, 2021 10:13 AM
Large investor rentals (by Deanna [TX]) Jan 9, 2021 2:59 PM
Large investor rentals (by JB [OR]) Jan 9, 2021 3:08 PM
Large investor rentals (by MikeA [TX]) Jan 9, 2021 4:57 PM
Large investor rentals (by Gene [OH]) Posted on: Jan 8, 2021 1:24 PM Message:
What used to be primarily mom and pop landlords are now having to compete even more with the large institutional investors who are building brand new homes and neighborhoods and keeping the as rentals.
foxbusiness.com/economy/rental-home-construction-climbs-as-purchase-prices-surge
"Investors are building tens of thousands of houses expressly to rent in a bet that Americans will keep flocking to spacious suburban living even if they can't afford to buy homes." --136.228.xxx.xx |
Large investor rentals (by #22 [MO]) Posted on: Jan 8, 2021 2:01 PM Message:
Thanks for sharing this. I'm in the build to rent space and this is great info! --174.234.xxx.xxx |
Large investor rentals (by JB [OR]) Posted on: Jan 8, 2021 2:27 PM Message:
Interesting. Thanks Gene.
I'm very curious as to how this will play out over the next few years. But if these giant corporate builders/buyers aren't a bit nervous about the sudden dramatic change in political power, they're not paying attention. --73.25.xx.xxx |
Large investor rentals (by S i d [MO]) Posted on: Jan 8, 2021 3:29 PM Message:
Interesting! Someone building brand new small (1 to 2 bed) houses with lots of spit and polish. They said one group was looking to get $1700 rent....wow!
I know the article says they are building with the intention to rent, but I wonder for how long? Seems like the best years of a house's life are in the first 5-7 when almost nothing needs maintenance, and after that things start to look a little tired and needing refreshing. Will they hold onto them or sell them off to smaller investors who don't mind putting in the time to refresh them and still having good rentals?
P.S. Did anyone see the carefully chosen language in this statement: "Homeownership is unaffordable for average wage earners in 55% of U.S. counties"? The bottom 50% poorest counties in Missouri are rural and sparsely populated, so even if none of the people living there could buy a house you'd still only have about 5-10% of the state's total population. --107.216.xxx.xxx |
Large investor rentals (by 6x6 [TN]) Posted on: Jan 8, 2021 3:47 PM Message:
It will be interesting to see how things are or change in a few months. --73.120.xx.xxx |
Large investor rentals (by Gene [OH]) Posted on: Jan 8, 2021 4:01 PM Message:
Sid, I know that I was told at one time that all the apartments being built in my area would remain apartments for the first 8-10 years. Then the apartments would be converted to condos and sold as the apartments/condos needed maintenance as things started to age. I wonder if they will do the same for those rental houses.
It still doesn't sound like anyone is building any starter homes much anymore. All my nice little 3 bedroom, 1000 sq. ft. homes have really appreciated lately since those houses are hard to find and no one is building any of them anymore. --136.228.xxx.xx |
Large investor rentals (by S i d [MO]) Posted on: Jan 8, 2021 4:28 PM Message:
Gene,
Exactly! Even though these are "small" homes, they are by no means starters, except for people making good money and just not wanting a big house. $1700 rent means the house probably runs $200,000 on the open market, at least.
20 years ago you could buy a 3/2/2 house slightly above builder's grade for $100,000 with basics like a gas log fireplace and a small deck. That was our first house, and it even had an unfinished walk out basement that we finished ourselves and turned it into a 4/3/2. Today, the cheapest new house I could find in the same hood is a 3/2/3 with granite countertops and stainless steel appliances: all nicely appointed and trendy looking. Priced right at $300,000.
Wages haven't tripled in 30 years, that's for sure.
--107.216.xxx.xxx |
Large investor rentals (by Robert,OntarioCanada [ON]) Posted on: Jan 8, 2021 7:35 PM Message:
What happens if a provincial or state legislates slums by introducing rent control where the annual operating costs go up more then allow annual rent increases under rent control then the rental units will start to deteriorate. Owning rental units is a long term investment where anytime things can change dramatically. When they brought in Wage, price controls along with rent control in 1975 a few years later they dropped the wage, price controls but rent control remained. All rental buildings or rental units were exempt from rent control if built after rent control then later the provincial government put all rental units under rent control. The builders did not trust the provincial government where when they built rental apartment buildings or rental units everything was registered as a condominium. Suddenly the tenants got a letter in the mail where if you want to stay buy the rental unit or leave. A lot of tenants were not interested in buying where they moved to other rentals. When the government changed the allowed rent increases from actual operating cost index to the consumer price index where annual operating costs were higher then the allowed rent increases under rent control a lot of smaller operations sold out to large corporations where they evicted then doubled the rent in some buildings. A small operation rents are always lower as owners do many of the repairs without contracting out where large corporations contract everything out. --99.236.xxx.xxx |
Large investor rentals (by MikeA [TX]) Posted on: Jan 8, 2021 11:39 PM Message:
Sid, stats are easy to make say what you want to. The one that jumped out at me is their statement: "Investors are building tens of thousands of houses expressly to rent in a bet that Americans will keep flocking to spacious suburban living even if they can't afford to buy homes. "
So if they can't afford to buy, how can they afford the rent? Any landlord can tell you that they are already paying for it plus a markup so that statement doesn't hold water. I think the writer missed it. These investors know that there are no builders building smaller cheap homes, too small of a profit on a one-by-one scale. Rather they will take advantage of this under-met need through economies of scale and making a larger profit on each over time as a rental first. Innovation through a free market economy at it's finest. Sounds like my post WW2 bungalows may finally have some competition. --64.130.xx.xxx |
Large investor rentals (by PG [SC]) Posted on: Jan 9, 2021 10:13 AM Message:
When I travel to the larger cities in SC I see those large, new, modern looking high rent places.
For most SC folks in the rural areas - $20 hr folks - the numbers just don't work. New construction at least 100sf - 100K house to operate could easily cost half of their income????
Possible solutions - Basic simple housing however you define that or as you will see 40,50,60 year loans. Think about cars - loans in the 60 and 70s was 3 yrs max - now 5,6,7. --172.242.xx.xxx |
Large investor rentals (by Deanna [TX]) Posted on: Jan 9, 2021 2:59 PM Message:
"if they can't afford to buy, how can they afford the rent?"
I don't know about specific markets, or the numbers revolving around specific situations, but around here, it's not so much a matter of not having the funds in a given month, but it's not having the credit to be loaned the money in the first place.
--137.118.xx.xxx |
Large investor rentals (by JB [OR]) Posted on: Jan 9, 2021 3:08 PM Message:
...as well as the down payment. --73.25.xx.xxx |
Large investor rentals (by MikeA [TX]) Posted on: Jan 9, 2021 4:57 PM Message:
So, they can afford it but their past experience using credit prevents them from getting a loan and they don't have the discipline to save a few thousand over time. I guess it sells better to say they can't afford it rather than calling it what it is. We wouldn't want to embarrass someone for mismanaging their finances. --64.130.xx.xxx |
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